Earnings Season Trends: So Far, Analysts Have Been Way Too Pessimistic

Even a “superstorm ” it seems was unable to dampen fourth-quarter profits to the extent that gloomy pundits had suggested in the closing weeks of 2012. With the reporting season moving into the home stretch the rate at which companies are reporting earnings that beat analysts’ forecasts remains high. As of Tuesday according to Thomson Reuters 70% of the 353 companies to report earnings beat expectations slightly better than the 65% average in the last four quarters and well above the long-term average of 62%. Cisco Systems (NASDAQ:CSCO) was the latest blue chip to top analysts' consensus projections earning $2.7 billion ...